Home ownership in most cases should not be an impulsive decision. For most individuals, it's the largest investment they will ever make, as such, it should be treated accordingly. Allowing yourself the necessary time to prepare financially will make the process far less stressful. In addition to giving yourself time to prepare for the purchase, you should also allow yourself a window to shop for something that fits comfortably in your budget. These simple sounding steps could save you substantial sums via incentive programs, as well as lessening the chance of buyer's remorse after the initial rush upon the closing of the sale.
- Give yourself time to prepare
- Make yourself aware of programs offered on a Federal and local level that could be beneficial to you and available in your region.
- Make sure you have cash on hand in addition to the down payment
Government on both state and federal levels, encourages home ownership. It's viewed as citizens having a personal stake in their communities. Because of this, there are numerous programs incentivizing home ownership. You can potentially receive assistance with budget planning, down payments, mortgage insurance, just to name a few. An abundant list of resources can be found on www.Hud.gov.
When purchasing a home, a significant amount of focus is put on saving money for the down payment. Rightfully so, in some cases it could be an exceptionally considerable sum. However, there needs to be an additional focus on making sure you have cash left after the down payment. Call this cash your emergency fund. Its purpose is to take care of other eventualities like home and auto repairs, medical bills, vacations etc. You do not want to be in a position where you will have to immediately start going racking up credit card debt when financial surprises come up.
The process may seem a little daunting at the beginning, but it's not something you need to take on by yourself. There are professionals that can guide you along the way. Having a great realtor, and mortgage broker will be hugely beneficial in understanding programs you may qualify for as well as finding the perfect home. Finally, hiring a Certified Financial Planner™ will help you look beyond what you can afford to what you can comfortably live with, and help you breathe easier through the whole process.